Tempus AI, Inc. TEM recently announced the acquisition of Deep 6 AI, a leading artificial intelligence (AI) company specializing in clinical trial matching. This strategic move aims to enhance Tempus’ precision medicine capabilities by leveraging AI-driven insights to accelerate patient recruitment and improve trial efficiency.
With this acquisition, Tempus can further streamline the process of connecting patients with relevant clinical trials, ultimately expediting the development of new treatments. Deep 6 AI’s advanced algorithms and data analytics will complement Tempus’ existing AI-driven platform, enabling more effective patient identification and trial optimization.
Likely Trend of TEM Stock Following the News
Following the announcement, shares of the company closed flat at $45.50 on Wednesday. In the past six months, TEM shares have lost 7.8% against the industry’s 2.2% growth. The S&P 500 declined 0.5% in the same time frame.
The acquisition of Deep 6 AI strengthens Tempus AI’s position in the rapidly growing AI-driven healthcare market, which can potentially boost TEM stock price in the long run. By enhancing its clinical trial matching capabilities, Tempus can accelerate drug development timelines, attract more pharmaceutical and biotech partnerships, and increase revenue streams.
Meanwhile, TEM currently has a market capitalization of $7.85 billion. Tempus expects 42% earnings growth in the next five years compared with the industry’s 20.8% growth.
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Details on TEM’s Latest Acquisition
The acquisition of Deep 6 AI marks a strategic expansion for Tempus, reinforcing its commitment to leveraging artificial intelligence to transform clinical research. Deep 6 AI specializes in AI-driven patient-trial matching, a critical component in accelerating drug development and ensuring that clinical trials are both efficient and effective. Traditionally, patient recruitment for trials has been a time-consuming and costly process, often delaying the development of life-saving treatments.
Deep 6 AI empowers healthcare organizations to mitigate risks in clinical trials, expedite patient recruitment, and rapidly generate real-world evidence with high accuracy. Its advanced AI-driven platform identifies suitable trial participants by analyzing both structured and unstructured electronic medical record (EMR) data in real-time. This technology operates within an extensive network, including academic medical institutions, National Cancer Institute (NCI)-Designated Cancer Centers, and NCI Community Oncology Research Programs, ensuring broader and more efficient trial matching.
With this acquisition, Tempus integrates Deep 6 AI’s advanced machine learning algorithms into its existing platform, enabling real-time analysis of vast amounts of patient data. This will allow researchers and pharmaceutical companies to quickly identify eligible candidates for clinical trials, reducing bottlenecks and optimizing trial outcomes.
TEM’s Recent Developments
In February, TEM announced the completion of its acquisition of Ambry Genetics, a recognized leader in genetic testing that aims to improve health by understanding the relationship between genetics and disease. In January, TEM unveiled olivia, an AI-driven health concierge app designed to assist patients in managing their health. With olivia, users can centralize medical data, gain insights, and track health progress, all through an easy-to-use platform available on both iOS and Android.
Tempus also announced the national launch of its FDA-approved xT CDx test, a comprehensive 648-gene next-generation sequencing assay designed for solid tumor profiling. This test provides crucial insights for oncology patients, including microsatellite instability status and companion diagnostic claims for colorectal cancer.
TEM’s Zacks Rank & Stocks to Consider
TEM carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the broader medical space are Masimo MASI, Boston Scientific BSX and Cardinal Health CAH. At present, Masimo sports a Zacks Rank #1 (Strong Buy), whereas Boston Scientific and Cardinal Health carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Masimo’s shares have rallied 30.1% in the past year. Estimates for MASI’s 2024 earnings per share (EPS) have increased 1.2% to $4.10 in the past 30 days. MASI’s earnings beat estimates in each of the trailing four quarters, the average surprise being 17.1%. In the last reported quarter, it posted an earnings surprise of 16.6%.
Estimates for Boston Scientific’s 2025 EPS have jumped 2.9% to $2.85 in the past 30 days. Shares of the company have surged 56.7% in the past year compared with the industry’s growth of 12.5%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.25%. In the last reported quarter, it delivered an earnings surprise of 7.69%.
Estimates for Cardinal Health’s fiscal 2025 EPS have increased 1.5% to $7.94 in the past 30 days. Shares of the company have gained 15.2% in the past year against the industry’s 4.1% decline. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.6%. In the last reported quarter, it delivered an earnings surprise of 10.3%.
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